Missouri Minute: Emerson said to be considering sale of electrical products unit; Watlow sells to private equity firm

Hello, MBA readers,

The Kansas City Chiefs fell short of a second consecutive NFL championship, losing to the Tampa Bay Buccaneers in Super Bowl LV. Despite Sunday’s setback, Kansas City quarterback Patrick Mahomes continues to see his profile rise, with marketing experts comparing the Kansas City star’s upside to that of Michael Jordan and Tiger Woods. Elsewhere, Emerson Electric is said to be considering the sale of Appleton Group, a $1 billion electrical products unit. That comes amid external talk of splitting up Emerson, and as a new chief executive takes the helm of the Ferguson-based industrial conglomerate. Plus, another staple of the St. Louis-area industrial sector is being sold. Watlow, a 100-year-old manufacturer that employs about 400 people in the St. Louis, is being acquired by a private equity firm.

Stay alert

Emerson said to be considering sale of $1 billion electrical products unit
The Ferguson-based industrial conglomerate is reportedly in preliminary talks about selling its Appleton Group. (Bloomberg)

Watlow sells to New York private equity firm Tinicum
The manufacturer of industrial heaters and other temperature systems employs about 400 people in the St. Louis area and 2,200 globally. CEO Peter Desloge called Tinicum a “committed long-term investor.” (St. Louis Post-Dispatch)

CorEnergy acquires California pipeline
The Kansas City-based company will acquire about 1,800 miles of California pipeline from Crimson Midstream Holdings in exchange for about $350 million worth of equity, cash and offshore pipeline. (Kansas City Business Journal)

Kansas City budget faces threat of earnings tax refund requests
With many commuters working from home, not in the city, officials expect some to request a refund of the city’s 1% earnings tax. (Kansas City Business Journal)

21 Missouri companies earn top rating for LGBTQ equality
The Human Rights Campaign’s 2021 Corporate Equality Index evaluates workplace LGBTQ policies, benefits and more. (MBA)

Real estate investor acquires Maryland Heights apartment complex
JRK Property Holdings of Los Angeles acquired the Fieldpointe of St. Louis complex for $81.5 million. (St. Louis Business Journal)

Efactory announces mentors for virtual program
The Springfield entrepreneurial support organization will hold its mentorship program online this year. Mentors include business founders, venture capitalists and engineers from across the state. (Springfield Business Journal)

2nd Shift Brewing makes second shift during pandemic
The St. Louis brewery was operating a standalone garage at its taproom for outdoor patrons but learned that counted as an unlicensed location. The brewery will now fill orders using its indoor taproom. (St. Louis Business Journal)

Say that again

“If one of my neighbors moves out, I”ll expand. I’m busting at the seams.”

That’s Walter Ray, owner of CD Warehouse, a 26-year-old CD and DVD store in St. Louis. Ray is considering expansion of his store after DVD sales spiked in 2020, the St. Louis Post-Dispatch reports. Despite the financial challenges of the COVID-19 pandemic and the increasing popularity of video streaming platforms like Netflix and Amazon, some St. Louis-area CD and DVD stores have seen a recent surge in business. Such retailers often cater to a niche consumer base that prefers to view and own their favorite shows and movies, which can be taken down from streaming platforms at any time.

Go figure

$97.9 billion 

Commercial bank deposits increased by $97.9 billion in the week ended Jan. 27, as more Americans poured money into their savings and paid credit card bills, Reuters reports. According to Federal Reserve data, consumer loans, excluding real estate, plummeted by $3.5 billion to a two-year low of roughly $1.5 trillion for the same week. The steady increase in savings is an indication of how some Americans some have used their federal direct payments during the coronavirus pandemic. Many economists believe that the amount of cash in bank accounts —currently equal to about 75% of annual U.S. economic output — will help expedite the country’s economic recovery.

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The Tampa Bay Buccaneers defeated the Kansas City Chiefs 31-9 on Sunday night in Super Bowl LV, denying Patrick Mahomes and the Chiefs a second consecutive NFL championship. But for Mahomes, Kansas City’s star quarterback, three years as an NFL starter have been a springboard to an elite level of marketability and earnings potential enjoyed by a select few athletes, The Athletic reports. Bolstered by a record contract with the Chiefs and an array of high-dollar endorsement deals, the 25-year-old Mahomes has the financial security to stomach somewhat riskier deals involving ownership stakes in companies and investment in pro sports franchises.


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